Growth Through Diversification
September 9th, 2008 by Mark RichardsonOne of the best decisions a business can make is to diversify. One of the worst decisions a business can make is to diversity. Knowing when to stay on the highway or get off on the side road is generally where genius occurs (or luck). If you share you diversification idea, I will give you the “good bad and ugly” of your idea. Needless to say you should make your own decision but please make it in an intelligent / thoughtful manner. I have seen more business go out of business due to bad diversification decisions than the reverse. So what are you thinking about?
September 12th, 2008 at 5:18 am
When do you think the economy will turn around? Do you think it will be like it was 2 years ago , or are those days gone forever?
September 12th, 2008 at 11:20 am
John – I think 2009 will be like 2008 but with the right marketing and sales strategies there are definite opportunities for healthy growth. I do not expect things to be back like two years ago (although I don’t think those days are gone forever, I do believe that we’ve got to ride out this slow down a little longer before we start seeing an upturn) but that is not necessarily a bad thing if you adjust your strategies.
September 14th, 2008 at 10:20 pm
Mark,
Case has done extensive demographic market research on which customers represent who a Case Client is. Will you also be publishing that in the future? What type of additional training formats will be offered through this web site in terms of business development?
It looks as if all indicators are that the demand for qualified remodeling will surpass the number of qualified remodeling companies in the very near future. Will Case be developing a seminar series for competitors?
September 16th, 2008 at 9:39 am
Alan -
Although Case is one of the largest remodeling organizations in the country, we still have less than 1 % of the market share. So that at least provokes the question, who really is our / your remodeling competitor? The answer is the client (homeowner). We believe by making the remodeling community better it ultimately benefits everyone. So, yes we will be sharing more of our knowledge and insights outside the walls of Case. This is dynamic process so the format it will take will evolve along with those that are receiving the knowledge. You can certainly expect that it will be technology based and this web site will be the door to access both high tech and high touch learning opportunities. Stay tuned for an exciting ride!
September 17th, 2008 at 2:49 pm
Dear Mark,
Thank you for answering my questions. I agree that this is going to be an exciting ride. Case sets the standard for many other companies to follow. I am excited about the opportunity to provide high level experience for my clients and to share in our experiences through this blog and our own blog site once completed.
Technology based marketing and distance learning are one of the fundamental keys to success for any future business. Premier HomePro will be expanding our web capabilities and believe that in time our efforts will benefit both the homeowner and the community alike.
Your comment about Case having less than 1% of the market is an interesting one. After reviewing your site, I presume that Case’s goal is to broaden your reach nationally, identify future partners and franchisees which in turn will allow Case to capture greater market share. Good move! I loved taking the online test and look forward to taking online courses and to obtain certifications offered through this medium.
If you are planning on developing a monthly email newsletter, please add me to the list
Best wishes in fiscal 2009
Alan Stevens, President, Premier HomePro
September 17th, 2008 at 3:47 pm
With a 300 billion dollar industry, having less then 1% can still a significant business (I will let you do the math). There are many industries that the “competition” is defined in large part by others (competitors) with double digit market share. Remodeling businesses need to appreciate they are in a very fragmented industry and be clear “who and what” they are competing against. Once that happens, a level of openness and giving with each other gives birth. One of our Case themes is “if you give, you get”. Although this sounds like we are very unselfish (and we are) it is also about making ourselves better. Once you have mastered something, the only way to take your game to the next level is to teach it to others .
September 22nd, 2008 at 11:50 pm
I have a question about diversifying.
I have been a remodeling contractor for 9yrs. Last year was my best year (i.e most profit, highest percent profit) and also my busiest year. Kind of forgot what my family looked like.
This year things are a bit slower but not much and I am not complaining after 07’s growth.
Right now I know I cannot get bigger without a complete revamp of my systems, procedures and office staff (I would need to hire some!).
Recently a friend of mine who is feeling the same pinch has proposed the idea of he and I partnering. He is an electrical contractor and I am a remodeler.
We agree that pooling our managerial resources would be a good ides (e.g. you watch thing while I go to Europe for a while) but don’t have a clue where or how to start….
Any ideas?
Should we suck it up and enjoy the money that comes with the stress?
MIKE CAIN
September 25th, 2008 at 3:36 pm
Hi Mike,
On paper partnerships ( like marriage ) make good sense , however , like marriage , more than 50% of the time end up in divorce . There is certainly no formula or recipe that guarantees success but it is important that you are partnering for the right reasons . The following are a few thoughts / questions to consider . 1) If it weren’t for your interesting in having more time off , would you want to be a partner with this person ? 2) Have you discussed the long term goals / vision ( make sure these are aligned ) ? A big reason partnership get off course is misalignment on vision 3) Are you equally committed . Another reason partnerships wane is the level of commitment to the business changes …While there are benefits to partnership , they will add complexity and potential risk to the business . Just do it for the right reasons ( hiring a great team member can also allow you to have vacations ).
October 25th, 2008 at 11:17 pm
Hi Mark,
Thanks in advance for joining the blog!
Not sure if this is relevant enough but instead of market diversification we choose a market niche product to assist company growth. We decided to go with an eco-friendly approach to business and since that time have been experiencing exponential growth. Since January of this year we are going to be on the 2nd season of Building Green on PBS. We are going to be in the USGBC magazine Greensource (DECEMBER 08) for new innovative green products, we are the first closet company in the US to get Greenspec listed and we will be in the Washington Post Magazine on November 2nd. I think diversification is great if properly implemented but I find that a market niche is almost a better approach if you can get it. We are very fortunate to have received the media attention we have gotten and it appears to be sky-rocketing my company. Whether it is company wide diversification or finding a market niche we find that getting back to basic business practice and implementing fantastic customer service is the key. I have always been very impressed with the Case Approach to growth and business strategies. Congratulations!
May 12th, 2009 at 4:10 pm
Interesting article. I stumbled across your site while searching for a similar topic on google. I thank you for taking the time to write about this topic….
July 6th, 2009 at 5:08 pm
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